MUMBAI: As part of a consortium, the country's third largest private sector lender Axis Bank and state-run IDBI Bank have committed to part finance the $2.3 billion counter-offer of Fortis Healthcare to acquire Singapore's Parkway Holdings. The consortium, in which Axis Bank and IDBI Bank are among the lead arrangers, could expand its size to 10-12 banks from both India and abroad. Other banks in the consortium include country's largest lender, State Bank and ICICI Bank, a source said.

Although the participating banks are yet to workout the modality of financing, it is likely that initial funding will be done through a short-term rupee-US dollar loan, carrying 6-12 months maturity but after this, Fortis may arrange long-term funding, the source said.

While the exact amount individual banks would contribute could not be immediately ascertained, it is understood that IDBI Bank is keen to contribute at least 10-20% to the total loan amount.

"The Singapore regulator has asked Fortis to prove its capability to fund the deal. They (Fortis) are just keeping the money ready to fund the deal if it goes through. The loan will be a mix of rupees and US dollars," the source said. Recently, Fortis made a counter-bid to buy out the remaining stake in the Singapore-listed hospital chain, challenging the bid of Malaysian sovereign wealth fund Khazanah to acquire the firm.

According to sources, clarity on Fortis' chances to win the bid could emerge over the next two weeks. The source said that Fortis is looking to avail loans for at least $1-1.5 billion out of the total acquisition amount. "They may be looking at $1-1.5 billion as bank loan, but there is a chance that the amount could be even bigger," the source said.

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The country's third largest private sector lender Axis Bank and state-run IDBI Bank have committed to part finance the $2.3 billion counter-offer of Fortis Healthcare to acquire Singapore's Parkway Holdings.